**Recent Bearish Trends for Dogecoin: What Lies Ahead?**
The recent downturn has pushed Dogecoin to lows below $0.2, a scenario that well-known analyst Ali Martinez had anticipated, igniting conversations about the future of DOGE. Currently, Dogecoin is experiencing a notable decline in tandem with the wider market, trading just above $0.2 after a sharp drop to $0.196. Over the past week, DOGE has seen a 20% decrease. This ongoing decline indicates a loss of momentum as traders seem to be distancing themselves from the asset. Additionally, network activity has fallen to levels not observed since October 2024, further contributing to the bearish sentiment.
**Bearish Breakdown and Potential Buying Opportunity**
As Dogecoin’s value has decreased, it has broken down from a symmetrical triangle pattern, indicating the possibility of further declines. This pattern formed as price movements converged within two trendlines. Despite multiple attempts to rise, the price ultimately fell below the lower trendline, confirming the bearish breakout. Analyst Ali Martinez illustrated this breakdown using a 1-hour timeframe chart for DOGE/USDT perpetual contracts on Binance. According to Fibonacci retracement levels, Martinez suggested that DOGE might test the 1.272 Fibonacci extension at $0.20578. If the downward trend continues, he indicated that further losses could bring the price down to the 1.414 Fibonacci level at $0.197. This prediction came to fruition, as DOGE eventually dropped to $0.196 before making a slight recovery to $0.2014. [Source](https://twitter.com/ali_charts/status/1894147290958630938)
**Declining Network Activity on Dogecoin**
Supporting the bearish outlook, Dogecoin’s network activity has seen a significant decline, as noted in a separate post by Martinez. At the time of his report, the number of active addresses had fallen below 60,000 per day. Whale transactions have also slowed, with only 66 recorded at that time. These statistics suggest a decrease in investor engagement, which could lead to increased selling pressure. Historically, lower network activity has been associated with diminished demand, impacting price movements.
**Shift in Dogecoin Investor Behavior**
Moreover, data from IntoTheBlock reveals a shift in investor behavior. There has been a decline in long-term holders and mid-term traders, while short-term traders have surged significantly. This change indicates a rise in speculative activity, which may lead to increased volatility. Specifically, long-term and mid-term holders have decreased by -2.67% and 11.81%, respectively, suggesting that even swing traders are exiting their positions.
Meanwhile, short-term traders holding for less than a month have increased by an impressive 107.45%. This sharp rise in speculative traders points to a greater likelihood of rapid price fluctuations and potential sell-offs as these investors pursue short-term profits.
**What’s Next for Dogecoin?**
Despite these declines, it’s worth noting that some analysts view this situation as a potential buying opportunity.
